Many small and medium-size business owners would like to adopt a pension plan—but are deterred when their financial advisors tell them how much of the total pension contribution will go to rank and file employees rather than to them. Adopting an age-weighted/cross-tested profit sharing plan is a way to overcome this hurdle if the owners are considerably older than the rank and file employees. When the demographics of the business are right, using an age-weighted/cross-tested profit sharing plan

Many small and medium-size business owners would like to adopt a pension plan—but are deterred when their financial advisors tell them how much of the total pension contribution will go to rank and file employees rather than to them. Adopting an age-weighted/cross-tested profit sharing plan is a way to overcome this hurdle if the owners are considerably older than the rank and file employees. When the demographics of the business are right, using an age-weighted/cross-tested profit sharing plan can result in a substantially disproportionate amount of the total pension contribution going to the older employees—the owners. Combining that plan with a 401-k feature can save even more money! If you have clients who are small- or medium-size business owners, who are older than their employees, and might be interested in using a pension plan that provides funding disproportionately to their own retirement accounts, you should attend this program. This program is an in-depth, informed discussion with a very experienced actuary as to how the age-weighted profit sharing plan works. You will come away from the program with a much better idea of whether the age-weighted profit sharing plan is something that might benefit your clients.

Objectives:

* Understand how an age-weighted/cross-tested profit sharing plan works * Knowledgeably advise clients whether this plan design is the right choice for them

Major Subjects:

* How the top-heavy/nondiscrimination rules apply to pension plan contributions * Profit sharing plans—what they are and how they work * How using the 401-k plan can save even more money * How using some safe harbor testing methods can avoid many of the normal pitfalls at no additional cost * Using a profit sharing plan in combination with other plans * How an age-weighted/cross -tested profit sharing plan works * How the age-weighted/cross-tested defined contribution plan compares to a defined benefit plan * Overall funding limits

Designed for:

Any tax practitioner who wishes to understand how to structure a pension plan that allows disproportionate contributions to the accounts of senior employees and business owners